Curious about how personal connections can revolutionize your business strategy? Want to understand the power of social media in shaping customer engagement? How did Avaya and AJ Bombers leverage social media to drive success? Ever wondered what the Thank You Economy is and how you can apply its principles to your business strategy? Dive in to find all the answers and more.

The Thank You Economy

Think about the last time someone went out of their way for you—perhaps watched your dogs or picked you up from the airport. That sense of gratitude, the urge to reciprocate, is universal. Just like these personal connections, business thrives on genuine interactions. 

Real business deals often happen over casual meetups, not just boardroom tables. Imagine scaling those authentic, warm interactions to thousands or even millions of customers through social media. It's not only possible but essential.

Social media isn't just another broadcast platform; it's a cultural shift that allows businesses to engage with customers as individuals. Consumers now interact with brands much like they do with friends and family. Early adopters saw this potential, and now it's a growing force in the economy. Brands that master social media can build trust and loyalty on a massive scale, which is vital because human nature drives us to do business with people we like.

Consider the story of Butcher Bob from the past, who knew his customers personally and thrived on word-of-mouth. That community spirit is making a comeback thanks to social media. Today, platforms like Facebook and Twitter connect people globally, creating a new form of small-town living where word of mouth travels faster and further than ever. This shift is a return to valuing relationships over transactions.

For instance, Gary Vaynerchuk built his wine business not just by selling but by engaging with people genuinely interested in wine. He answered questions and built relationships without pushing sales, eventually earning trust and loyalty. This approach exemplifies how businesses can reveal their heart and soul, making customers feel valued.

Research shows that social networking significantly influences purchasing decisions. People trust recommendations from friends and social circles more than traditional ads. This is why businesses must adapt and engage authentically on social media. It’s a long-term strategy that builds brand equity and customer loyalty.

The Thank You Economy calls for businesses to act like small-town shop owners, treating each customer as the most important. Companies that adapt to this mindset will thrive in a world where word of mouth has unprecedented power. Social media has made it possible to cultivate these relationships at scale, bringing us back to a time when caring meant business. So, get on board, engage authentically, and watch your business flourish in this new era.

Can Social Media Transform Your Business into the Next Gary Vaynerchuk Success Story?

Over the past few years, corporations have often rebuffed social media due to fear, driven by Wall Street's aversion to risk. Headlines like “Most Brands Still Irrelevant on Twitter” perpetuate this fear, but the real issue is that many companies aren't using social media correctly. Just as poor basketball skills don’t indicate a flawed ball, inadequate social media results often stem from half-hearted efforts.

Social media engagement requires genuine intent. Leaders must fully immerse their businesses with Thank You Economy principles to see real benefits. Consider the competitive swimmer who only dips her toes in the water; she won't improve unless she dives in fully.

Here are Some Excuses Companies Use:

1. No ROI: The return on investment for social media is real, just less tangible. Nielsen studies show nearly 70% of people seek advice from friends and family when making purchases. With 60% of online users on social networks, trust built there translates to sales. Advocates, customers who passionately support your brand, spend more and stick around longer. IBM studies show advocates’ share of wallet is 33% higher, and they spend 30% more with their favored retailers.

2. Metrics Aren’t Reliable: While tools for measuring social media's impact are evolving, they are becoming reliable. Nielsen’s cross-media metrics tool, which includes Facebook, underscores this. Metrics are improving, and companies should embrace these tools rather than dismiss them.

3. Too Young: Social media's early adopters gain significant advantages. Unlike traditional media where latecomers can catch up by spending more, social media success relies on building relationships, which takes time.

4. Just a Trend: Social media has fundamentally changed communication. Platforms may change, but the relationships built on them remain. Companies should move with their customers to new platforms as they emerge.

5. Control Our Message: Negative comments can be beneficial; they provide an opportunity to engage and improve. Ignoring social media doesn't prevent negative feedback—it just means missing the chance to address it directly.

6. No Time: Tracking what every customer says is crucial. Even if it means reallocating resources or hiring dedicated social media teams, the effort pays off in customer loyalty and advocacy.

7. We’re Doing Fine Without It: Complacency is dangerous. Engaging with customers in real-time allows for proactive problem-solving and continuous improvement.

8. We Tried It; It Doesn’t Work: Social media is a long-term investment. Patience, commitment, and strategy are key to seeing results.

9. Legal Issues: While some industries face more constraints, pushing the envelope and creatively engaging within legal boundaries can yield substantial rewards.

10. Takes Too Long to Pay Off: Social media, though requiring upfront investment, offers ongoing engagement with customers, unlike one-off traditional media buys. Diversifying your media strategy to include social media can lead to significant long-term growth.

11. Only for Startups or Tech Brands: Every industry can benefit from social media by finding relevant conversations and engaging meaningfully with their audience.

The Thank You Economy rewards good manners, honesty, and high-touch engagement. Companies will increasingly value "relationship capital" and employ teams dedicated to fostering one-on-one relationships. The solution to overcoming obstacles in the Thank You Economy is simple: outcare your competitors. Social media provides the tools to create meaningful connections with customers, ensuring long-term success.

Why Wall Street's Fear of Social Media is Holding Businesses Back

On July 22, 2009, Amazon acquired Zappos for $1.2 billion, a decision that raised eyebrows among venture capitalists. They questioned whether Zappos was worth such a high price. However, Jeff Bezos, a visionary, saw beyond numbers to the culture and trends that Zappos represented. 

Zappos excelled in customer experience, often outselling Amazon in some non-footwear products. Bezos recognized that Zappos’ success wasn't just about convenience but their unparalleled customer service.

Zappos’ culture, which prioritized customer care, was the real value. Bezos himself emphasized his admiration for customer-obsessed companies, highlighting that Amazon and Zappos shared this obsession. However, for any company to thrive in the "Thank You Economy," this caring culture must start at the top and cascade down, affecting every employee.

A great example of this is Vaynermedia, where the author implemented a no-vacation policy, allowing employees to take as much or as little time off as needed. The focus was on employees managing their time to perform their best. This approach fostered a trusting and caring environment, crucial for employees to deliver exceptional customer service.

Zappos, with its free food, library, and overall happy work environment, exemplifies how treating employees well translates to excellent customer service. Employee satisfaction stems from being treated like adults and having their individual needs met. This requires leaders to engage with employees on a personal level, similar to how they would interact with customers.

John Pepper, CEO of Boloco, a Boston-based burrito chain, sets a strong example. He ensures employee welfare by offering health care, language classes, and by engaging personally with customers through social media. This direct engagement not only fixes immediate issues but also generates positive word-of-mouth, as seen when Pepper resolved a customer complaint about loud music, earning public praise and increased brand loyalty.

In future, the companies will have a Chief Culture Officer (CCO) to track and meet the needs of every employee, fostering an environment where employees feel valued and are therefore motivated to work harder. This approach reduces turnover and attracts top talent, creating a passionate workforce devoted to the company's cause.

The Thank You Economy isn't just a concept but a practical approach where caring for employees ultimately leads to better customer relationships and business success. By investing in employees and trusting them, companies can build a culture of openness and authenticity.

In short, to dominate in the Thank You Economy, companies must prioritize a caring culture that starts at the top, invest in their employees, and maintain authenticity in all interactions. This approach not only benefits customer service but also builds a loyal, motivated workforce.

Can Jeff Bezos' Vision for Zappos Transform Corporate Culture Everywhere?

You probably saw the iconic Old Spice commercials featuring Isaiah Mustafa that aired after the 2010 Super Bowl. Procter & Gamble, Old Spice's parent company, played a brilliant game of media Ping-Pong, starting with spoofing every stereotype of masculinity. Mustafa's bare-chested charm and humor made the ads unforgettable, leading millions to rewatch, discuss, and spoof them online.

Five months later, Old Spice leveraged this success by asking followers on social media to submit questions for Mustafa, who responded with around 200 real-time videos. This engagement extended the campaign’s reach from TV to Twitter, Facebook, Reddit, and YouTube, turning Old Spice into national news.

Sales of Old Spice Body Wash skyrocketed, and their YouTube channel reported over 11 million views and 160,000 subscribers. However, the campaign’s initial buzz soon faded as Old Spice failed to continue engaging with its newfound audience. Despite earning massive media coverage and brand awareness, Old Spice missed a golden opportunity to build lasting relationships with their customers.

The key takeaway is that while quality content is vital, so is ongoing engagement. In the Thank You Economy, brands need to focus on long-term relationships rather than short-term spikes in attention. Even small gestures can make a huge impact, as evidenced by 50 Cent's decision to engage with a critical fan by making a YouTube video together, turning a potential negative into a positive.

Shock and awe tactics, like sending handwritten notes or small gifts to loyal customers, can create memorable experiences and foster deep connections. Companies should aim to evoke emotions, not just push messages. The Thank You Economy rewards those who engage authentically and consistently.

Whether you're a big brand or a small business, the principles are the same: create quality content, engage continuously, and show genuine care for your customers. This approach not only builds loyalty but also turns customers into passionate advocates for your brand.

Isaiah Mustafa's Old Spice Magic: From Viral Sensation to Missed Opportunity

When you think of cutting-edge companies killing it on social media, voice-mail software and desk phones aren't what come to mind. Yet Avaya, known for its high-performing business communications systems, is proving that even B2B companies can thrive on social platforms.

Avaya’s primary goal on Twitter is to address technical questions and complaints. Initially handling 1,000 interactions a week, they now manage nearly 4,000. They even developed a product that alerts their customer service team to disgruntled tweets, helping them retain around 50 customers at a significant cost-saving.

One tweet that changed the game for Avaya came from someone undecided between Avaya and another brand for a new phone system. Avaya responded quickly, offering expert help. Thirteen days later, they closed a $250,000 deal from that tweet.

What Avaya Did Right:
1. Showed Up: Avaya was present and attentive on Twitter, leading to connections and significant sales.
2. Showed Up First: Being ahead in social media, they gained market share and brand equity.
3. Remembered the Human Element: They recognized that behind every B2B transaction is a person needing reassurance and outstanding service.

Similarly, AJ Bombers, a Milwaukee burger joint, thrives by putting customer interaction at the forefront. Owners Joe and Angie Sorge opened a restaurant with great food and unique features like a peanut delivery system via ceiling rail. They also allowed customers to build the menu, set prices, and suggest promotions.

Joe Sorge used social media to engage with customers from day one. He paid close attention to Yelp reviews, thanking positive reviewers and offering disgruntled customers free meals until they were satisfied. This approach converted many unhappy customers into regulars.

When their main grill broke down one Friday, Sorge set up a live Ustream to show transparency and handed out free peanuts and beer. This open communication built trust and kept the restaurant memorable for customers.

Sorge noticed many Twitter followers using Foursquare, a local search-and-discovery mobile app. He started offering incentives for check-ins, which increased customer visits. He also created events to earn Foursquare Swarm Badges, drawing significant crowds and doubling Sunday sales.

Partnering with another local burger place, AJ Bombers rallied fans to get featured on the Travel Channel’s Food Wars, significantly boosting their visibility.

What AJ Bombers Did Right:
1. Spoke Their Customers' Language: They used social media to build a supportive community quickly and cost-effectively.
2. Tried New Things: Ignored traditional marketing, focusing on platforms like Foursquare to engage customers.
3. Rewarded Loyal Customers: Instead of spending on traditional ads, they invested in their customers, building loyalty and increasing sales.

Both Avaya and AJ Bombers exemplify how businesses can leverage social media and customer engagement to drive success, proving that authentic connections and innovative strategies pay off in the Thank You Economy.

Can Avaya and AJ Bombers Teach Your Business the Secret to Social Media Success?

Joie de Vivre Hotels, California's largest boutique hotel company, embodies its name—bringing "the joy of life" to its guests. Founded by Chip Conley, the company focuses on creating memorable, personalized experiences. At the heart of this mission is the DreamMaker program, where employees go above and beyond to surprise and delight guests. 

Take the story of Jennifer Kemper, a reservations manager at the Hotel Durant in Berkeley. She met a mother staying at the hotel while her son was undergoing cancer treatment. Moved by her story, Jennifer created a special welcome basket with a ceramic dragonfly mug, fresh chamomile tea, and sunflowers, along with a heartfelt note. This act of kindness left a lasting impression on the mother, who shared the story with her family and friends, amplifying the hotel's reputation through word of mouth.

Joie de Vivre also excels in creating fun and unique experiences, like the scavenger hunt for a bride's bachelorette party at the Shorebreak in Huntington Beach, complete with VIP treatment at local bars and a beautifully decorated room upon their return.

The company's innovative approach extends online with Yvette, an industry-first online matchmaking service that helps travelers find the perfect hotel for their personality. This initiative, along with a robust social media strategy, has kept Joie de Vivre at the forefront of the hospitality industry, even during economic downturns.

Similarly, Dr. Irena Vaksman, a dentist in San Francisco, leverages social media to build strong relationships with her patients. Her practice stands out with unique touches like movie goggles for patients and a spa-like office atmosphere. Her husband, Robert Vaksman, manages their social media presence, ensuring consistent engagement and responsiveness to feedback.

When faced with an overwhelming response to a Groupon offer, the Vaksmans used the experience to improve their customer service, demonstrating the power of adaptability and transparency in social media. This approach has garnered them positive reviews and media attention, proving that even small businesses can thrive with the right strategy.

Attorney Hank Heyming in Richmond, Virginia, also exemplifies the power of culture and intent in the Thank You Economy. Working for a forward-thinking law firm, Troutman Sanders, Heyming offers pro bono or discounted services to startups, building a network of loyal clients. His efforts have paid off, with many of his initial clients growing into larger accounts, demonstrating the long-term value of investing in relationships.

These stories highlight the importance of personalized, thoughtful interactions in building a strong brand and loyal customer base. Whether through grand gestures or small acts of kindness, companies that prioritize genuine connections and leverage social media effectively can create lasting impressions and drive word-of-mouth marketing.

Chip Conley's Joie de Vivre: Elevating Hospitality with Heartfelt Experiences

Genuine interactions are key to both personal and professional success. Social media has shifted the landscape, allowing brands to engage with customers on a personal level, much like friends and family. This engagement builds trust and loyalty, crucial for thriving in today's market.

Early adopters of social media understood its potential, and now it's clear that businesses need to embrace these platforms to cultivate relationships at scale. Authentic engagement transforms customers into advocates, driving sales through trust rather than traditional advertising.

The Thank You Economy emphasizes treating each customer with individual care, akin to small-town shopkeepers of the past. Companies that genuinely interact and invest in their customers see long-term benefits in loyalty and advocacy. Excuses against social media, such as perceived lack of ROI or reliability of metrics, overlook the deeper value of relationship-building.

Success in social media requires full immersion and genuine intent, not half-hearted efforts. Negative feedback should be seen as an opportunity to improve, and ongoing engagement is crucial. The focus should be on long-term relationships rather than short-term gains.

Businesses that prioritize a caring culture from the top down, invest in their employees, and maintain authenticity in their interactions will dominate. This approach not only enhances customer service but also builds a loyal, motivated workforce. The future rewards those who engage authentically and consistently, proving that caring genuinely for customers and employees alike leads to lasting success.

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The Thank You Economy

Gary Vaynerchuk

Curious about how personal connections can revolutionize your business strategy?

Want to understand the power of social media in shaping customer engagement?

How did Avaya and AJ Bombers leverage social media to drive success?

Ever wondered what the Thank You Economy is and how you can apply its principles to your business strategy?

Dive in to find all the answers and more.

Key Ideas

#1